Managed Service Provider, >80 Percent Recurring Revenue
Annual Revenue: $1,502,612
Net Cash Flow: $560,241
Location: Miami, Florida
IT support and cloud solutions Managed Serviced Provider (MSP) for small and medium-sized businesses with a track record of over a few decades in Miami. The company offers a full stack of customized support IT services, including onsite and remote help desk support services, monitoring and alerting of critical infrastructure, patch management, and vulnerability scanning of crucial infrastructure with a focus on cybersecurity.
The company has more than three decades of experience assisting small businesses in migrating to a Cloud environment; they have generated more than $1.5m in revenue in 2022 (6% YoY growth) and have increased their seller discretionary earnings to $560k in 2022 vs $409K in 2020 (+37% increase). Recurring revenue from subscriptions from technology and cloud services is more than 80%, with the top 5 clients (majority on subscriptions) accounting for 48% of last year’s revenues.
In addition to the company owners, the company employs:
- 2 administrators
- 2 technicians on client sites
- 5 technicians for customer and project services
Services and Clients:
The company provides a whole stack of IT services, including onsite and remote help desk support services on Windows and MAC platforms, monitoring and alerting critical infrastructure, patch management, and vulnerability scanning of crucial infrastructure with a specialization in a comprehensive cybersecurity stack.
Amongst their partners & certifications: include Microsoft (Gold certified partner and small business specialist), Dell, HP, Cisco, and Vmware.
They serve about 70 clients annually each, with many of the top five providing recurring revenue. The company’s total recurring revenue is more than 80% – based on one- to three-year managed services agreements). Clients include law firms, financial services firms, healthcare organizations, tourism businesses, retailers, and many more. Almost all clients are based in Miami.
Reason For Sale:
The owners are ready to retire and hand over the business to the right buyer who can take advantage of many growth opportunities in the MSP space. They are willing to assist the buyer during the transition period entirely, and one of the owners can work for 3-6 months on the operations, technical, and partner relationship side.